The Delta deal

This was almost immediately followed by the breakthrough the company so desperately needed - a deal with a major carrier, Delta. But the agreement with Delta owed more to the airline's shrewd view that Priceline needed it, rather than vice versa. As a result, Priceline was set onerous conditions as part of the deal. These included warrants over shares amounting to some 12 percent of Priceline's stock. However, Priceline got its critical mass, and other major carriers soon followed.

The company has used the same stock incentive for its other airline partners. At the end of 1999, United Airlines, US Airways and American Airlines signed a stock option deal with Priceline, joining Delta, Continental, Northwest, TWA and American West.